There are some limited direct deposit options available under the existing contract, and the contract did contemplate EDD transitioning to direct deposit during the term of the contract. Under the terms of the contract, funds on inactivated cards stay with B of A for more than a year before the card is closed and funds are returned to EDD in May of the subsequent year. We encourage anyone with a claim to contact us and provide supporting documents, if possible, so we can review their situation as quickly as possible.įunds from potentially fraudulent accounts currently remain with B of A. We have increased our call center staffing for our pre-paid cards nearly 20-fold since the pandemic began and continue to add staff to serve people calling in. We are working with the state and law enforcement to identify and take action against fraudulent applicants, protect taxpayer money and ensure that legitimate applicants can access their benefits. Unfortunately, there has been billions of dollars of fraud during this pandemic in state unemployment programs, including California. Statement from Bank of America (William Halldin): If your EDD debit card has been hacked send us an email and we will submit your name as well. KPIX has been giving the names of victims that have contacted us to Bank of America. But when we asked Bank of America about that, the answer came back, "No comment." I'm not gonna let it go," said Erica Young.ĮDD told us if the fraud is happening on the card, then it is up to Bank of America to resolve it and pay victims back. "I just wanted to say that to all of you don't give up, there is protection under that Visa logo that Bank of America puts on that prepaid card. It's a horrible situation," said Tina Lee. "I don't even understand why Bank of America has this long-standing contract with EDD. "I think that's part of the reason California is pushing people into using the cards rather than using direct deposit," said Saunders. So it's profitable for both Bank of America and EDD.
It's a revenue-sharing agreement, in which EDD gives the bank the taxpayer funds to distribute and the bank in return pays EDD for the privilege of handling the money. The Employment Development Department's exclusive contract with Bank of America may have something to do with it. "What California does is really force people into these cards, where under the law, you have the right to choose how you receive your unemployment benefits," said Saunders. She says the California Employment Development Department may be doing a run around federal law by offering only paper checks as an alternate, but not allowing direct deposit, something most other states offer. Saunders says the real problem is forcing people to use the debit card that, as we have reported, does not have a security chip. "They can't just deny claims that they know are probably fraudulent," said Lauren Saunders with the National Consumer Law Center. The bank won't tell us how many customers are affected, how much has been stolen or when if ever victims will get their money back. But when you have an institution as large as Bank of America and they're refusing to do anything about it and the state is aware of it too, I just don't think that's fair," said Erica Young.īank of America once again turned down our request for an interview. "I know I am not exempt from fraud, I know it's just the time we are living in people are going to get more desperate. But what use is that if we can't even check the status of that claim?" said Paula Xiao. "I actually called this morning at 7 a.m. The letter was generated as soon as I hung up the phone," said Erica Young.īank of America's letter goes on to say "you may request that we re-open your claim."īut victims say that too seems to go nowhere.
"The letter was dated the 20th, I didn't make the initial claim until the 19th, so nothing was investigated.
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